1. Field of Invention
This invention relates to storing information recorded as part of a financial transaction, and, more particularly, to storing data representing an image of a check or an image of a form of identification, such as a signature, a photograph, or a fingerprint, in an efficient manner.
2. Background Information
A number of banking interests have been pursuing a nationwide paperless transaction system in response to increases in the volume of checks handled and further in response to increases in the average cost of handling individual checks. In the early 1970""s a group of California bankers formed the Special Committee on Paperless Entries (SCOPE) to explore the technical, operational, and legal framework needed for an automated payments system. In addition, in 1972, the first Automated Clearing House (ACH) association began operation, with the National Automated Clearing House Association (NACHA) being formed in 1974 to coordinate the ACH organizations being formed in various regions. Now, a nationwide ACH system makes paperless transaction exchanges available to all depository financial institutions, with benefits resulting from cost reductions and improved productivity, compared to conventional paper check transactions.
Currently, a number of efforts are being made to extend the application of paperless transactions with banks to a number of merchants. For example, in a conventional credit card transaction, an electronic transfer of funds results from a telephone transmission from the merchant to an agency handling credit card transactions, with the signed credit card slip being retained by the merchant for his records, and to be used, if necessary, to obtain subsequent payment or prosecute if such payment is refused. A further step, which is currently being implemented, is the electronic storage of the customer""s signature, together with transaction data, so that the merchant no longer needs to retain the signed credit card slip. This is now accomplished by having the customer sign the credit card slip on a small digitizing, or graphics, tablet having associated electronics to generate signals representing the position of the pen tip as he signs the slip. These signals are used to generate graphical data representing the signature, which is stored by the merchant as proof that the customer in fact signed the slip.
A number of patents describe methods for processing checks by means of electronic funds transfer in real time, at the time the check is offered for payment, without requiring submission of the paper check itself into the banking system. For example, U.S. Pat. No. 5,832,464 describes a system and method providing an ability to use a check as a form of payment at a point of use without having to use the signed check as the binding document that is processed through the financial system to obtain payment by the entity rendering the service. The system and method comprises reading a hardcopy check via an electronic scanner, correlating the account number to a biometric or other piece of data that would positively identify the person tendering the check and using the biometric, such as a digital photograph of each authorized user, or other data, such as information from a driver""s license, to confirm the identity of the person tendering the check. This data is then associated with an available record of the person who performed the biometric or other data comparison. Once a particular financial transaction is authorized, the check is returned to the tenderer and the financial transaction is processed as an electronic fund transfer (EFT).
U.S. Pat. No. 5,053,607 further describes a point of sale device for real-time check processing, with the financial transaction associated with a sale being completed while the merchant and customer are still face-to-face. The device uses means for reading the magnetic ink information extending along the lower edge of a check, a printer, and a keypad to feed information into a computing system, which communicates through an existing telecommunications system with the customer""s bank and with the merchant""s bank to transfer funds from the customer""s account to the merchant""s account.
U.S. Pat. No. 5,175,682 describes a method and structure provided for processing checks in a timely and cost-effective manner. A check recipient, such as a merchant, utility billing department, and the like, utilize hardware and software for quickly gathering data from checks received in order to allow prompt processing of those checks. Such hardware preferably includes a reader for reading the MICR account information printed on the check, and means for associating that data with information pertaining to the transaction at hand, including for example, the dollar amount of the transaction. This information is combined in a data record, which is stored for future batch data transmission to a clearinghouse or the issuing bank itself. In an alternative embodiment, this data is communicated in real time to the clearinghouse or issuing bank. In another embodiment, one or more selection criteria are used to determine which checks will be processed in real time, with the remaining checks being processed in the batch mode. For example, checks written above a threshold dollar amount, out of state checks, or any other high-risk checks are processed in real time in order to minimize losses due to fraudulent check use.
While these prior-art methods provide for processing check-based financial transactions without the need for processing paper checks through the financial infrastructure, the quantity of data that must be captured, stored, and transmitted is very large. Furthermore, the methods require data transmission in real time, when the check is presented, which may often be inconvenient, expensive due to the telephone connections which must be maintained, or even impossible. Therefore, what is needed is a method for efficiently storing data associated with financial transactions for later transmission or processing. If real-time check processing is to be avoided as often impractical, even for high-monetary value checks, security may be achieved by processing high-monetary value checks in a manner maximizing the likelihood that an arrest and prosecution can be expected in the event that a check given for a sale is not subsequently honored, either upon its presentation to a banking institution, or upon following attempts to collect funds. However, while successful prosecution depends on the presentation of clear and accurate evidence, conventional methods for storing the images of checks are potentially inadequate for determining whether a signature is genuine or a forgery. Yet, any practical system for storing check images must also be capable of storing thousands of images, including the images of many checks too small to suggest prosecution if they are dishonored. Thus, what is needed is a practical method for storing vast amounts of data to cover relatively small transactions and for storing accurate, detailed images to cover relatively large transactions.
U.S. Pat. No. 6,032,137 describes a system comprehensively supporting the processing of documents and electronic data associated with different applications, including sales, business, banking, and general consumer transactions. The system retrieves transaction data such as credit card receipts, checks in either electronic or paper form at one or more remote locations, encrypts the data, transmits the encrypted data to a central location, transforms the data to a usable form, performs verification using signature data and biometric data, generates informative reports from the data, and transmits the informative reports to the remote location(s). However, again, what is needed is a practical method for storing vast amounts of data to cover relatively small transactions and for storing accurate, detailed images to cover relatively large transactions.
A number of other patents describe methods to scan and recognize particular forms of data from a check, so that the data can be stored or used for processing. For example, U.S. Pat. No. 4,933,536 describes a check processing device incorporated in a point of sale terminal, including a xerographic copier to reproduce an image of personal identification onto the back of a check, an electronic stamping mechanism for imprinting a transaction date, time and number on the back of the check, and a scanner, which reads and stores a customer""s checking account number and controls a cash register according to the validity and presence of the check and the presence of personal identification.
U.S. Pat. No. 5,898,157 describes a device for automatically reading checks, wherein a scanner includes a reading unit for reading an identification code on the check, and a reading unit for taking an image of the surface of the check, and the device also includes a central processing unit receiving the digitized image of the check, and for defining an image, on the basis of the identification code, at least two subimages respectively containing the numeric amount and the alphabetic amount of the check,
U.S. Pat. No. 5,838,814 describes a check permitting confirmation that a check was drawn by an authorized maker at the time of transaction. The check includes a picture of the authorized maker and an electronically scannable means for informing the bank whether the check was transacted with the authorized maker present. The picture may include stenganographic identification coding, such as an encoded bank mark which can be electronically read and correlated, but which is not reproduced by a photostatic process. Confirmation of endorsement by the person or entity to whom the draft is drawn is effectuated by providing for a plurality of unique codes associated with the identity of an endorser. Such unique codes preferably include a xe2x80x9cmade payable to codexe2x80x9d and an xe2x80x9cendorsement codexe2x80x9d. Preferably the invention of U.S. Pat. No. 5,838,814 provides for means for the drawee of the draft to confirm that sufficient funds are available in the account upon which the draft is drawn. Such means may include incorporation onto the draft itself of electronically readable information correlatable with the account from which the draft is drawn.
While the data derived by such methods from checks may be used in a number of ways, in many applications, thousands of checks are process daily, potentially causing the generation of too much data to handle reasonably. What is needed is a method for determining which checks can be expected to provide useful data, and for limiting the collection of such data to the processing of those checks.
Accordingly, it is a first objective of the invention to provide a method for storing information recorded as part of a financial transaction in a manner in which the amount of information stored is determined by the monetary value of the financial transaction.
It is another objective of the invention to provide a method for storing a graphical representation of such a document at a resolution determined by the monetary value of a financial transaction associated with the document.
It is another objective of the invention to provide a method for determining whether to store optically recognized text data from such a document based on the monetary value of the financial transaction.
In accordance with a first aspect of the invention, a method is provided for storing information recorded as part of a financial transaction. The method includes:
a) determining a monetary value of the financial transaction;
b) generating computer readable signals representing the information;
c) determining a quantity of data to represent the computer readable signals, wherein the quantity of data is decreased when the monetary value of the financial transaction is lower than a threshold monetary value; and
d) storing data representing the quantity of data.
The process of determining a monetary value of the financial transaction includes adding the prices of items being purchased, with inputs being provided through a keypad and/or a barcode scanner. This process may also reflect a desire on the part of the customer to receive cash back or to use the transaction document to pay for only part of the purchases. If a check is presented to pay for the transaction, the check is scanned, with the quantity of data being a number of pixels, and/or text generated by optical character recognition. If a credit card is presented for payment, a signature is recorded on a digitizing tablet, and the quantity of data is a number of bits used to describe the movement of an instrument, such as a pen or stylus, used in the signature process.
In accordance with a second aspect of the invention, a system is provided for processing a financial transaction. The system includes a storage device, first and second input means, and a processor. The first input means is for processing purchases associated with the financial transaction. The second input means is for generating computer readable signals representing information to be recorded as part of the financial transaction. The processor is programmed to determine a monetary value of the financial transaction in response to inputs from the first input means, to determine a quantity of data to represent the computer readable signals from the second input means, with the quantity of data being decreased when the monetary value of the financial transaction is lower than a first threshold monetary value, and to store data in the storage device representing the quantity of data.
The first input means, used to process purchases associated with the financial transaction, include, for example, a keypad and a barcode scanner used in a conventional way to determine the prices of items being purchased in transactions associated with the document.
In accordance with a third aspect of the invention, a computer readable medium is provided. Data representing each check within a plurality of checks is stored on the computer readable medium. The data is stored within first and second data structures. The second data structure contains a bitmap representing a number of pixels derived from an image of each check within the plurality of checks. The number of pixels is determined according to a monetary value of the check for each check within the plurality of checks. The first data structure includes some or all of the following: a first field containing data representing a transaction date for each check within a plurality of checks, a second field containing data representing the monetary value of each check within the plurality of checks, a third field containing data representing an account number for each check within the plurality of checks, a fourth field containing data representing a check number for each check within the plurality of checks, and a fifth field containing data representing a pointer to a bitmap stored within the second data structure for each check within the plurality of checks.